MNI BRIEF: Exchange Rate Hedging Essential- China SAFE's Liu

Exchange rate hedging is essential for Chinese firms as their trade becomes increasingly diverse, State Administration of Foreign Exchange Deputy Director Liu Bin said on Thursday at the Bund Summit. 

The regulator will promote the opening-up of the foreign exchange sector, balancing yuan internationalisation with the opening of the capital account with a focus on making it easier for foreign financial institutions to invest and operate in China, he said. 

China will also push financial institutions to optimise their exchange rate risk management services, Liu pointed out.  (See: MNI INTERVIEW2: China To Move Only Slowly On FX Liberalisation)

China has to balance financial opening and security,  and prevent the transmission of risks across regions, markets, borders and between onshore and offshore markets, he said.